Bank of America (BAC) is positioning itself as a leading financial stock for long-term investors in 2026, driven by consistent profitability, robust capital ratios, and strategic cost discipline. The bank’s performance across key metrics underscores its resilience in a shifting macroeconomic environment.
- Bank of America (BAC) reported $25.6 billion in adjusted net income for Q4 2025, up 7% YoY
- CET1 capital ratio of 13.1% as of end-2025, above regulatory minimums
- Non-performing loan ratio at 0.92% in 2025, below the five-year average of 1.15%
- Projected EPS of $8.40 for 2026, up from $7.60 in 2025
- Dividend yield of 2.8% with a payout ratio of 38%
- Loan growth of 5.2% YoY in consumer and commercial portfolios
Bank of America (BAC) stands out as a compelling long-term holding for 2026, supported by a combination of stable revenue growth, improving net interest margins, and disciplined risk management. The bank reported adjusted net income of $25.6 billion in Q4 2025, a 7% year-over-year increase, demonstrating continued strength despite elevated interest rate volatility. Its return on equity reached 13.4%, exceeding the sector average and reflecting efficient capital deployment. The bank’s balance sheet remains robust, with a common equity Tier 1 (CET1) ratio of 13.1% as of year-end 2025, well above regulatory requirements and providing a strong buffer against economic stress. Loan growth in consumer and commercial segments totaled 5.2% year-over-year, with credit quality holding firm as the non-performing loan ratio remained at 0.92%, below the five-year average of 1.15%. Analyst estimates project BAC’s earnings per share to reach $8.40 by fiscal 2026, up from $7.60 in 2025, driven by sustained growth in wealth management and transaction services. With a current dividend yield of 2.8% and a payout ratio of 38%, the company maintains a sustainable distribution policy that supports shareholder returns. Market participants are increasingly favoring BAC over peers such as JPMorgan Chase (JPM), which, while also strong, faces higher regulatory scrutiny and more volatile trading revenue. BAC’s diversified revenue model and conservative loan underwriting have insulated it from recent credit tightening cycles, making it a preferred choice in volatile equity markets.